On May 11, 1926, AT&T announced that a subsidiary, the Broadcasting Company of America (BCA), had been formed to take over its radio broadcasting assets, including WCAP.[2] Two months later AT&T signed an agreement to sell its BCA subsidiary to RCA for $1 million. Because there was no need for RCA to continue operation of two Washington stations, WCAP ceased broadcasting on July 31, 1926, with its hours ceded to WRC.[3]